Calgary Industrial Market Report: Plan Ahead if Your Lease Ends Soon

Several large transactions help push industrial vacancy rates to lowest levels in recent years, notably Schlumberger Canada Ltd. signed three leases totaling almost 1.4 million square feet.

There are numerous speculative developments underway with delivery timelines for mid to late 2027. Tenants with near-term lease expiries may face challenges with current market conditions with limited options and continued upward pressure on rents. Average Asking Rate is up to $12.89 per sf and landlords are tightening their concessions on free rent and other inducements.

Calgary continues to attract more and more users in manufacturing, technology, oil and gas, and logistics which will continue to drive demand for industrial space. Anticipate this demand to outpace new developments in the near term, which will keep Calgary’s industrial market tight for the next 1-2 years.